Kingfisher Plc. is a compelling Buy at the current price level. The stock finished trading on the London Stock exchange at 340p a share on 21st December, up by 0.35% compared to the previous close. Currently, the stock has been trading above its 20 day moving average (DMA), 50 DMA and 100 DMA of 333.0p, 318p and 309p respectively, which also indicates towards the bullish trend of the stock. In terms of technical analysis or charting also, the stock has been firmly trading on the upward trend line and has been forming higher highs and lower lows. The immediate support and resistance for the stock is at 333p and 350p respectively. Any breakout above 350p may also take the stock to 370p as well. Therefore, traders or investors need to keep an eye at the respective levels and accordingly hedge the positions.
Now let’s throw some light on the latest third quarter update of the company. The company announced its third quarter trading update a month back on the 21st November. As per the update, the company’s Q3’18 topline was up by 3% year on year. As per the management, the company is well on track to deliver its full year strategic milestones. The company also returned £237m to its shareholders via buyback. (Read more)
Kingfisher Plc. is a compelling ‘Buy’ at the current price as the stock is pretty undervalued. The company announced its financial year 2016-17 full year financial results last week on 22nd March. However, it seems that the results failed to cheer the investors as the stock opened gap down the same day and continued to fall! The stock finished trading on the London Stock exchange at 324.4p on 28th March, down by 0.25% compared to the previous close. Currently, the stock has been trading below its 20 day moving average (DMA), 50 DMA and 100 DMA of 334p, 332p and 342p respectively. Clearly the stock has been in the bearish trend for quite some time. However, it seems that the stock is done with its correction and is ready to consolidate now at the current levels. The stock is having a very crucial support at 321p, any breakdown below 321p would means further downside and would also indicate that there is still some more room for correction. Therefore, traders or investors shall not hold their long positions, if at all the stock goes below 320p. The moving averages would act as a strong resistance for the stock. However, we see short term upside up to 337p in a span of 15 days to 1 month. In case, the stock pierces 337p then next target would be 350p. Also, to confirm the bull trend the stock needs to cross 332p, so traders are advised to initiate fresh longs only if the stock goes above 332p. The long term view of the stock remains bullish only as the company has strong fundamentals and financial matrix.
Now let’s throw light on the latest financial results of the company. The company’s total adjusted sales in constant currencies are up by 1.7%. The company reported FY’17 underlying pretax profit at £787m, up by 14% mainly driven by UK and Poland LFL sales growth and favorable FX movements on the translation of non-sterling retail profits. The company has also returned £430m of cash to shareholders, £230m via ordinary dividend and £200m via share buyback. As previously announced, Kingfisher disposed of a controlling 70% stake in B&Q China on 30 April 2015. On 23 March 2016 Kingfisher exercised its option to dispose of the remaining 30% economic interest, with the agreement of Wumei Holdings Inc. (Read more)
Kingfisher Plc is a ‘hold’ at the current levels as the company has come up with solid financial half yearly results lately. The company announced its half yearly results on September 20th.
The company’s CEO commented on the results, ““It has been a productive first half. We have delivered a good 'business as usual' result with both sales and profit growth. Performance has been driven by Poland and the UK, especially Screwfix, and a stable profit performance in France. This has been achieved alongside managing the start of our ambitious transformation plan, based on creating a unified company where customer needs come first. In the UK, the EU referendum has created uncertainty for the economic outlook, even though there has been no clear evidence of an impact on demand so far on our businesses. In France we remain cautious on the short term outlook. Looking longer term, we are starting to build solid foundations to enable us to deliver our five year transformation, which is our key growth driver. We are making good progress on our strategic milestones for this first year and we are on track. The level of transformation activity will increase significantly, however given the expertise and energy of our colleagues we continue to feel confident about the challenges ahead.” (Read more)
Kingfisher Plc is a compelling ‘Buy’ at the current price levels with the potential upside of up to 25%. Post Brexit, the stock went through deep correction and has come down from 366p to 314 in just 2 trading sessions! However we see this sharp dip as a lucrative investment opportunity to go long as the strong fundamentals speak about the future upside of the stock. Kingfisher plc is engaged in the sale of home improvement products and services and has a market cap of £7.30 bn. The Company operates over 1,200 stores in 11 countries across Europe and China. The Company's segments include UK & Ireland, France and Other International. The Other International segment consists of the operations in Poland, China, Germany, Portugal, Romania, Russia and Spain, and of its joint venture with Koc Group, Koctas, a Turkey-based home improvement retailer. Currently the company has been trading 3% above its 52 weeks low and 15% below its 52 weeks high. The stock finished trading on London stock exchange at 320 p a share on Thursday 30th June. The stock has a forward price to earnings ratio of 14.0 which is almost in line with FTSE100 12 month forward price to earnings of 13.3.The analysis of P/E ratio also indicates that the stock is fairly priced.
However the company generates over 45% of its revenue from Uk and Ireland, 36% from France and remaining revenue from the other international segments. Therefore the company’s revenue depends mainly on the United Kingdom and France. (Read more)